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In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 24.5% and were flat year over year. Net sales missed the consensus mark by 1% and decreased 2.7% year over year.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has remained stable at 70 cents in the past 60 days. The estimated figure indicates a 27.8% decline from the year-ago quarter’s level.
Quanex Building Products Corporation Price and EPS Surprise
The consensus mark for net sales is pegged at $278 million, indicating a 7.2% decrease from the year-ago reported figure.
Key Factors to Note
Quanex’s fiscal third-quarter revenues are expected to have been affected due to weaker market demand in the company's European Fenestration and North American Cabinet Components segments.
Although the overall demand pattern is improving gradually, especially in the United States, the ongoing wars in Ukraine and Gaza and continued pressure on energy costs in these regions are likely to have affected Europe’s business. Also, inflationary pressures and labor woes are likely to have been reflected in the fiscal third-quarter bottom line.
The company is witnessing input cost pricing pressures for its films and engineered adhesives, as well as some of the chemical feedstocks. Additionally, an increase in international shipping costs and other macroeconomic woes are potential headwinds.
Nonetheless, the company’s robust business strategy and cost-containment efforts are likely to have offset these headwinds to some extent in the quarter to be reported.
For the fiscal third quarter, NX expects total revenues to be up 4-6% sequentially. Segment-wise, it expects revenues to increase 6-8% in the North American Fenestration segment, up 4-6% in the European Fenestration segment, and down 1-3% in the North American Cabinet Component segment.
Adjusted EBITDA margin is expected to be flat to down 25 basis points in the fiscal third quarter.
The Zacks Consensus Estimate for North American Fenestration’s sales is pegged at $170 million, which indicates growth from $159.8 million in the second-quarter 2024. The same for European Fenestration sales is currently pegged at $58.9 million, which suggests a growth from the prior quarter’s level of $56.6 million. The consensus mark for the North American Cabinet Components segment sales is currently pegged at $5.1 million, indicating a sequential decline from $51.1 million.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Quanex this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ROCK has slightly reduced its net sales outlook for 2024 to reflect recent slower market conditions in both Residential and Renewables end markets, partially offset by strength in both Agtech and Infrastructure. Nonetheless, it remains focused on driving participation gains across the segments, with operational improvements to support solid second-half and full-year margin expansion and cash flow growth.
TopBuild Corp. (BLD - Free Report) reported lackluster second-quarter 2024 results. Both earnings and sales lagged the Zacks Consensus Estimate. This was mainly due to higher interest rates, project delays and supply constraints that continue to impact results across some residential and commercial end markets. The company has also trimmed its sales and adjusted EBITDA views for 2024.
Nonetheless, both earnings and sales increased on a year-over-year basis given pricing, increased volumes and benefited from acquisitions despite the challenges.
Armstrong World Industries, Inc. (AWI - Free Report) reported solid results for second-quarter 2024, wherein earnings and net sales topped the Zacks Consensus Estimate and increased on a year-over-year basis.
AWI’s growth trend was backed by solid contributions from the Mineral Fiber, as well as Architectural Specialties segments. Growth was attributable to the increase in average unit value and volume. Also, contributions from recent acquisitions aided the uptrend.
Image: Bigstock
Quanex Gears Up to Report Q3 Earnings: What's in the Offing?
Quanex Building Products Corporation (NX - Free Report) is scheduled to report third-quarter fiscal 2024 results on Sept. 5, after the closing bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 24.5% and were flat year over year. Net sales missed the consensus mark by 1% and decreased 2.7% year over year.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has remained stable at 70 cents in the past 60 days. The estimated figure indicates a 27.8% decline from the year-ago quarter’s level.
Quanex Building Products Corporation Price and EPS Surprise
Quanex Building Products Corporation price-eps-surprise | Quanex Building Products Corporation Quote
The consensus mark for net sales is pegged at $278 million, indicating a 7.2% decrease from the year-ago reported figure.
Key Factors to Note
Quanex’s fiscal third-quarter revenues are expected to have been affected due to weaker market demand in the company's European Fenestration and North American Cabinet Components segments.
Although the overall demand pattern is improving gradually, especially in the United States, the ongoing wars in Ukraine and Gaza and continued pressure on energy costs in these regions are likely to have affected Europe’s business. Also, inflationary pressures and labor woes are likely to have been reflected in the fiscal third-quarter bottom line.
The company is witnessing input cost pricing pressures for its films and engineered adhesives, as well as some of the chemical feedstocks. Additionally, an increase in international shipping costs and other macroeconomic woes are potential headwinds.
Nonetheless, the company’s robust business strategy and cost-containment efforts are likely to have offset these headwinds to some extent in the quarter to be reported.
For the fiscal third quarter, NX expects total revenues to be up 4-6% sequentially. Segment-wise, it expects revenues to increase 6-8% in the North American Fenestration segment, up 4-6% in the European Fenestration segment, and down 1-3% in the North American Cabinet Component segment.
Adjusted EBITDA margin is expected to be flat to down 25 basis points in the fiscal third quarter.
The Zacks Consensus Estimate for North American Fenestration’s sales is pegged at $170 million, which indicates growth from $159.8 million in the second-quarter 2024. The same for European Fenestration sales is currently pegged at $58.9 million, which suggests a growth from the prior quarter’s level of $56.6 million. The consensus mark for the North American Cabinet Components segment sales is currently pegged at $5.1 million, indicating a sequential decline from $51.1 million.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Quanex this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, NX carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Releases
Gibraltar Industries, Inc. (ROCK - Free Report) reported strong second-quarter 2024 earnings despite top-line woes.
ROCK has slightly reduced its net sales outlook for 2024 to reflect recent slower market conditions in both Residential and Renewables end markets, partially offset by strength in both Agtech and Infrastructure. Nonetheless, it remains focused on driving participation gains across the segments, with operational improvements to support solid second-half and full-year margin expansion and cash flow growth.
TopBuild Corp. (BLD - Free Report) reported lackluster second-quarter 2024 results. Both earnings and sales lagged the Zacks Consensus Estimate. This was mainly due to higher interest rates, project delays and supply constraints that continue to impact results across some residential and commercial end markets. The company has also trimmed its sales and adjusted EBITDA views for 2024.
Nonetheless, both earnings and sales increased on a year-over-year basis given pricing, increased volumes and benefited from acquisitions despite the challenges.
Armstrong World Industries, Inc. (AWI - Free Report) reported solid results for second-quarter 2024, wherein earnings and net sales topped the Zacks Consensus Estimate and increased on a year-over-year basis.
AWI’s growth trend was backed by solid contributions from the Mineral Fiber, as well as Architectural Specialties segments. Growth was attributable to the increase in average unit value and volume. Also, contributions from recent acquisitions aided the uptrend.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.